This bill modifies the legal framework for unfair or deceptive trade practices by doing the following:
1. Establishing Public Impact for Certain Trade Practices
Some forms of unfair or deceptive trade practices will now be considered to have a "significant impact" on the public by default.
This makes it easier for plaintiffs to prove harm in consumer protection cases.
2. Limiting When a Deceptive Trade Practice Claim Can Be Filed
A person cannot file a deceptive trade practice claim solely based on:
Breach of contract (failing to fulfill a contractual obligation).
Negligence (carelessness that causes harm).
Claims for damages related to professional services (e.g., advice from lawyers, doctors, financial advisors).
However, exceptions exist: A claim can be made if:
There was a material misrepresentation of fact (deliberately misleading information).
There was a failure to disclose material information (hiding key facts).
The action wasn’t just advice, judgment, or opinion (e.g., fraudulent conduct disguised as professional services).
Summary:
This bill strengthens consumer protection by making it easier to prove public impact in deceptive trade practice cases. At the same time, it limits when deceptive trade practice claims can be filed, preventing lawsuits based purely on contract breaches, negligence, or professional advice—unless fraud or deception is involved.
Summary
The bill establishes that certain evidence that a person has engaged
in an unfair or deceptive trade practice constitutes a significant impact to the public. The bill also clarifies that a deceptive trade practice claim cannot be based solely on a claim that a person breached a contract or engaged in negligence or on a claim for damages based on the rendering of professional services, unless the claim for damages involves an allegation of a material misrepresentation of fact, a failure to disclose material information, or an action that cannot be characterized as providing advice, judgment, or opinion.
